Wednesday, 17 April 2019 09:59

GDT price index records 10th consecutive rise

Written by 

The Global Dairy Trade (GDT) price index has now risen in ten consecutive auctions and is up 23% since the start of the year.

The overnight GDT auction saw the index rise 0.5% over the previous auction.

However, whole milk powder prices eased 0.7% in last night’s auction, their second consecutive fall.

Westpac dairy analyst Anne Boniface says a feature of recent months has been renewed strength in fats prices; this continued in last night’s auction. 

AMF prices are now up 19% since the start of the year and 34% from their November lows, while butter prices have risen an even more impressive 36% this year and are 52% above their November 2018 lows. 

“While prices for both are below the record levels they reached in 2017, demand appears to be remaining robust even at these levels,” says Boniface.

“Over time, we would expect the relative prices of milk fat and protein to return to average levels, as manufacturers increase production of whichever products generate better returns (whole milk powder or skim milk powder and fats). That increased supply will put downward pressure on prices, however divergence can persist for an extended period.”

Commenting on the WMP price dip, Boniface says this may be some of the supply premium coming out of prices as concern about the impact of dry weather on NZ milk production eases. 

“While soil moisture deficits in parts of the country remain worse than average for this time of the year, they are not as acute as we saw a few weeks ago.”

Key results

AMF index up 4.2%, average price US$6,126/MT

Butter index up 3.5%, average price US$5,544/MT

BMP not offered

Ched index up 1.4%, average price US$4,319/MT

LAC index down 3.4%, average price US$912/MT

RenCas index down 2.4%, average price US$6,460/MT

SMP index up 0.2%, average price US$2,462/MT

SWP index not available, average price not available

WMP index down 0.7%, average price US$3,269/MT

More like this

$10.25/kgMS milk price now in play

A significant rise in Global Dairy Trade (GDT) auction last week has prompted one bank to lift its forecast milk price for the season to above Fonterra's mid-point.

$10 milk price still on

Whole milk powder prices on Global Dairy Trade (GDT) remains above long run averages and a $10/kgMS milk price for the season remains on the card, says ASB senior economist Chris Tennent-Brown.

Mixed results on GDT

The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.

Featured

National

Machinery & Products

Farming smarter with technology

The National Fieldays is an annual fixture in the farming calendar: it draws in thousands of farmers, contractors, and industry…

» Latest Print Issues Online

Milking It

110,000 visitors!

OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.

Sticky situation

OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter